Tamboran’s SS-2H ST1 Well Sets New Beetaloo Basin Gas Production Record

Record Production Milestone

Tamboran Resources Corporation has announced a significant operational milestone with its Shenandoah South 2H sidetrack (SS-2H ST1) well delivering a record average 60-day initial production (IP60) gas flow rate of 6.8 million cubic feet per day (MMcf/d) in the Beetaloo Basin. This achievement marks the highest IP60 flow rate recorded in the basin to date, more than doubling the previous record set by the SS-1H well earlier in 2024.

The well’s performance is particularly notable given the length of the stimulated horizontal section; 5,483 feet within the Mid Velkerri B Shale; and the sustained low decline rate observed during the testing period. Over the last 30 days of production testing, the exit flow rate remained steady at 6.4 MMcf/d, with flowing wellhead pressures holding around 720 psi. This stability suggests promising commercial deliverability prospects for the basin’s shale gas resources.

Benchmarking Against US Shale

Tamboran highlighted that when normalized to a 10,000-foot horizontal section, the SS-2H ST1 well’s average flow rate of 12.4 MMcf/d aligns closely with production rates from more than 11,000 wells in the prolific Marcellus Shale dry gas area in the United States. This comparison underscores the technical and commercial potential of the Beetaloo Basin to supply natural gas at competitive levels, reinforcing Tamboran’s confidence in its development strategy.

The company’s CEO, Joel Riddle, emphasized the strategic importance of these results, noting that the three wells currently being drilled as part of the 2025 Shenandoah South Pilot Project are critical to fulfilling Tamboran’s contractual commitment to deliver 40 MMcf/d of gas to the Northern Territory Government. Given that over 90% of electricity in the Northern Territory is generated from gas-fired power plants, this supply is expected to play a pivotal role in enhancing regional energy security.

Advancing the Pilot Project

Tamboran has commenced drilling the Shenandoah South 4H well, the first of three wells planned in the 2025 pilot program. These wells are being drilled consecutively using the Helmerich & Payne FlexRig Flex 3 Rig from the SS2 pad in Exploration Permit 98. The combined horizontal length of the three wells will total approximately 30,000 feet, representing the largest drilling program undertaken in the Beetaloo Basin to date.

The ongoing 60-day flow test of SS-2H ST1 is planned to extend to 90 days, pending joint venture approval, which will provide further data on production sustainability and reservoir characteristics. The well’s gas composition is predominantly methane (over 91%), with minor amounts of ethane and other hydrocarbons, and minimal non-hydrocarbon gases, indicating a high-quality dry gas resource.

Implications for Australian Gas Markets

Tamboran’s progress is timely as Australia’s East Coast gas market continues to seek reliable domestic supply sources amid fluctuating global energy prices. The Beetaloo Basin’s proximity and the premium pricing environment relative to US benchmarks like Henry Hub position Tamboran well to capitalize on growing demand. Moreover, the company’s secured land at the Middle Arm Sustainable Development Precinct in Darwin for its proposed NTLNG project signals a broader vision to integrate upstream production with downstream liquefied natural gas infrastructure.

While the results are encouraging, Tamboran’s forward-looking statements caution investors about the inherent risks, including capital requirements, regulatory approvals, operational challenges, and market volatility. The company’s ability to maintain production rates and successfully execute its pilot program will be closely watched by stakeholders.